FTSE 100 movers: SABMiller gains as AB InBev sweetens approach; Rolls-Royce slumps

London’s FTSE 100 was down 0.7% to 6,374.06 at 1520 BST as investors struggled for direction amid quiet trade, with no major data releases scheduled.

SABMiller was on the front foot as Belgium-based Anheuser-Busch InBev sweetened its proposal to £43.50 after its London-listed rival rebuffed a third approach at £42.15 last week. AB InBev said the improved proposal comprises a cash offer of £43.50 per share, with a partial share alternative available for around 41% of SABMiller shares.

The cash proposal represents a premium of over 48% to SABMiller’s closing price of £29.34 on 14 September, which was the last business day prior to renewed speculation of an approach from AB InBev.

On the downside, shares in engineering and defence group Rolls-Royce fell sharply as investors got their first chance to react to a press report that European regulators are being forced to enter anti-competitive contracts to keep their 24,000 aircraft flying.

The Financial Times said late on Friday that this comes as equipment makers seek a slice of the $60bn a year maintenance and repair market. The FT said the European Commission has written to the airlines and aircraft component manufacturers asking for information about the provisions being written into services contract – terms that could restrict choice when servicing everything from engines to wifi networks.

Standard Chartered was also under the cosh after Investec downgraded the stock to ‘hold’ from ‘buy’ with an unchanged target price of 820p. It said the latest leg of Standard Chartered’s 26% eight-session surge appears to have been driven by market enthusiasm around media reports of plans to cut about 1,000 top staff.

“Although (if true) this may have potential to extend our own cost reduction forecasts, we caution that despite a raft of recent downgrades, consensus revenue/earnings forecasts remain far too high, in our view,” said the brokerage.

Risers

Smiths Group (SMIN) 1,051.00p +2.54%

Coca-Cola HBC AG (CDI) (CCH) 1,490.00p +1.15%

International Consolidated Airlines Group SA (CDI) (IAG) 568.50p +1.07%

Unilever (ULVR) 2,811.00p +0.90%

SABMiller (SAB) 3,699.00p +0.83%

Randgold Resources Ltd. (RRS) 4,458.00p +0.81%

Intu Properties (INTU) 339.30p +0.68%

Fresnillo (FRES) 739.50p +0.68%

Kingfisher (KGF) 353.20p +0.63%

Capita (CPI) 1,257.00p +0.48%

Fallers

Rolls-Royce Holdings (RR.) 723.50p -4.24%

Anglo American (AAL) 696.60p -4.12%

Glencore (GLEN) 124.75p -3.37%

Standard Chartered (STAN) 760.80p -3.29%

Meggitt (MGGT) 479.40p -2.66%

Antofagasta (ANTO) 581.50p -2.43%

Inmarsat (ISAT) 915.00p -2.40%

Ashtead Group (AHT) 1,022.00p -2.20%

Royal Bank of Scotland Group (RBS) 327.10p -2.15%

InterContinental Hotels Group (IHG) 2,376.00p -2.06%